What’s next after the 700 MHz auction

Now that a gag order has been lifted on the 700 megahertz spectrum auction, the major players are now free to talk about how it went and what plans they have now.

As expected AT&T and Verizon announced they would build next generation wireless networks based on a new technology called Long Term Evolution. The technology will give both operators a fourth-generation network that will handle both voice and a wide variety of high-speed data uses.

Similar to WiMax, which Sprint-Nextel is pursuing, LTE will provide super-fast wireless broadband that will support DSL and cable like speeds over wide distances. It’s expected to unlock a whole slew of data applications beyond connecting laptops and cell phones.

Verizon Wireless CEO Lowell McAdam talked of using LTE to connect almost any kind of device, from digital media players and gaming consoles to home appliances. Verizon plans on rolling out LTE by 2010, McAdam said.

AT&T, which bought up a bunch of 700 MHz spectrum as well, plans on using its purchases to complement other 700 MHz holdings from its deal with Aloha Partners. The combined spectrum will go toward AT&T’s next generation network, which will have 100 percent coverage in the 200 largest markets, said Ralph de la Vega, chief executive of AT&T’s wireless unit. AT&T is looking at debuting its 4G network in the 2012 time frame.

De la Vega was pleased that AT&T won’t have the added requirements placed on its spectrum holdings like Verizon Wireless. Verizon bought the C Block, which contains provisions for opening up the airwaves to any device and application. Google specifically lobbied for those restrictions and got them enacted when the C Block auction, which Google was bidding in, went over the reserve price of $4.6 billion.

Speaking of Google, they also talked post auction and they seemed relieved to have not won the C Block. While they were prepared to grab the spectrum, they were a little worried about the prospect of having to shell out at least $4.6 billion for the airwaves, according to a story in the New York Times.

Google execs really just wanted to trigger the open access rules and kept bidding to make sure their bid hit the reserve price. At one point, the company waited five days before Verizon Wireless finally came in with the winning bid. Along the way, Google auction leaders had to do a little hand-holding with their nervous higher ups, reassuring them that they were doing the right thing.

In its public policy blog, Google said it actually upped its own bid 10 times to ensure the C Block reserve price was met. Google said it was happy with the way things turned out, ensuring openness reigns in the C block.

“Nonetheless, partly as a result of our bidding, consumers soon should have new freedom to get the most out of their mobile phones and other wireless devices,” the company wrote.